COVID-19, Tax & Assurance Guidance

IRS Extends Individual Tax Filing Deadline to May 17

Posted on March 18, 2021 by

Sarah Russell

Sarah Russell

Margaret Amsden

Margaret Amsden

Share This

Share on facebook
Share on twitter
Share on linkedin
Share on email

President Biden recently signed the American Rescue Plan Act of 2021 (ARPA) into law providing an additional round of relief to businesses and individuals. A key component of the law is the popular $1,400 economic stimulus payment to help those struggling with employment issues. As widely reported, the IRS issued 90 million stimulus payments within the last week and will issue more in the coming months. The ARPA also made the first $10,200 of unemployment benefits received in 2020 tax-free. This retroactive change to how unemployment benefits are taxed has made it almost impossible for the IRS to keep up. For this reason, on March 17, the IRS announced an extension of the April 15 filing deadline to May 17 for individual taxpayers. To help clients, prospects, and others, Clayton & McKervey has provided a summary of the key details below.

Key Extension Details

In the extension announcement, the IRS outlines the 30-day extension noting that it is automatic and individual taxpayers do not need to make a special election to qualify. Although formal guidance will be issued in the coming days, the extension also applies to any tax payments related to 2020, regardless of the amount, which would have otherwise been due. This means taxpayers will not incur penalties and interest if payment is made by the new May 17 deadline.

Estimated Tax Payments

The relief does not apply to estimated tax payments due on April 15, 2021. They are still due on the same date and there will be no waiver of penalties and interest for late payments.

Other Important Considerations

The IRS relief for victims of the February winter storms in Texas, Oklahoma, and Louisiana will not be impacted. These filers still have until June 15 to file and pay 2020 individual taxes. Additionally, keep in mind that the change in deadline only applies to individual filers; the extension does not impact other filers such as corporations or trusts, or entities with a fiscal year.

Contact Us

The extended filing deadline gives individuals more time to prepare or make updates to their tax returns. The state of Michigan recently extended the filing deadline for state income tax returns to May 17 as well. If you have questions about the information outlined above or need assistance with a tax or accounting issue, we can help. For additional information, call us at 248.208.8860 or contact us today. We look forward to speaking with you soon.

Sarah Russell

Shareholder

Sarah leads the firm’s domestic and international tax practice and is known for the practical & passionate way she advocates for clients.

Margaret Amsden

Shareholder

Leading the firm’s private client services group, Margaret’s strategic & educational approach fosters a culture of learning among clients and colleagues.

Related Insights

Tax & Assurance Guidance

Foreign Tax Withholding: What You Need to Know

Posted on April 26, 2022 by

Rob Cheyne
Making service payments to a foreign person is a common cross-border transaction. U.S. taxpayers need to be aware of the applicability of withholding tax and related reporting requirements to ensure they comply and avoid unintended consequences. A U.S. payor must collect withholding tax and remit it to the IRS in the case it is applicable.

Tax & Assurance Guidance

SALT Relief for Partners and S Corps

Posted on February 23, 2022 by

Miroslav Georgiev
With small businesses supporting nearly 47% of U.S. employees, states have been advocating for pass-through entities, operating partnerships and S corporations that have been harshly impacted by the Tax Cuts and Job Act ‘s state and local taxes deduction limit. Recent legislative activity is finally providing relief for many of these businesses. 

Tax & Assurance Guidance

IRS Provides Relief on K-2 and K-3

Posted on February 17, 2022 by

Margaret Amsden
In an attempt to provide more transparency with regard to reporting of foreign activity and/or information to foreign owners, the IRS came out with two new forms: Schedule K-2 (an addendum to the Schedule K) and Schedule K-3 (an addendum to the Schedule K-1). Learn about the latest K-2 and K-3 reporting requirements issued by the IRS.

Sign up for our newsletters

Get general business and industry-specific news and knowledge straight from our accounting specialists.

The Sound of Automation Podcast

The Sound of Automation Podcast

Industrial automation businesses are the driving force behind Industry 4.0, and Clayton & McKervey is here to help.

Insights & Perspectives

The Sound of Automation: Looking ahead to CSIA 2022

In this episode we talk with Lisa Richter, Director of Industry Outreach and Growth at Control System Integrators Association (CSIA) . Lisa and Bryan look ahead to the CSIA Executive conference taking place in Denver, CO on June 27-30, 2022 and share with listeners what to expect, who will be there, and the discussion panel topics focusing on this years’ theme “The Future of Work”. 

Read More

The Sound of Automation Podcast

Industrial automation businesses are the driving force behind Industry 4.0, and Clayton & McKervey is here to help.

Skip to content